Lloyds is reminding mortgage customers of the support available to them. With the Bank of England estimating 1million low fixed-rate mortgages will mature across the UK this year, many homeowners will be considering how higher mortgage payments might affect their household finances. Lloyds is outlining the ways it has available to help.
While the number of customers asking for help or falling behind with payments has remained relatively low across the year, Lloyds is reiterating to customers that its specialist teams remain ready to support them if needed.
Over 80% of mortgage customers are currently on a fixed mortgage rate. This means most customers have certainty of monthly payments and are not affected by the changes in pricing for new mortgages.
Two-thirds of customers who are coming to the end of their deal this year are on a two-year fixed rate that they took out in 2024. These customers will see similar or, in some cases, lower monthly payments if they switch to a new product rate today. However, those choosing a new rate at the end of a five-year period will be facing higher rates than in 2021.
A full range of competitive rates, across all deposit levels and product terms, remains available to First Time Buyers and those remortgaging to Lloyds.
Customers who need further support:
Lloyds continues to offer help to customers struggling with payments in line with the Mortgage Charter, which was introduced in 2023 and provides a number of ways lenders can take to support their customers.
The specialist care team continues to support customers to reduce their monthly payments by either temporarily switching their mortgage to Interest Only or extending their mortgage term. Lloyds also enables customers who are already in arrears to transfer their mortgage to a new lower rate.
While not all options are suitable for every borrower, and each comes with its own affordability and eligibility considerations, these options create even more choice for customers to manage their mortgage in a way that better suits their circumstances.
Support for vulnerable customers
Lloyds also recognises that there are other factors and life-changing events that can create challenges for customers in being able to manage their finances and meet their monthly commitments.
Where customers are experiencing these challenges, such as serious illness or bereavement, Lloyds can support with specifically designed processes and by working with partners – such as StepChange – to signpost free, independent advice to help people manage their wider finances alongside their mortgage.
“We want to reassure customers that we have a range of options and support available no matter their situation. We know most people like the certainty of a fixed rate, and we’ve made it as easy as possible for people to take action well ahead of their current deal is coming to an end. For anyone that is worried, our specially trained colleagues are ready to help, with ways to reduce monthly payments or identify additional support for those needing support with their finances beyond their mortgage.”
Andrew Asaam, Mortgages Director at Lloyds Banking Group
